CHina’s Sinopec to Continue Buying Russian Oil

Sinopec, a Chinese state energy company, said it would continue to buy crude oil and gas from Russia, even as Western democracies step up sanctions in response to the country’s invasion of Ukraine.

Sinopec President Yu Baocai, during his company’s annual results call, noted that it bought both crude and gas from Russia last year.

“We will also continue to do so in accordance to commercial principles and international trade regulations in the future with all trading partners to develop normal oil and gas trading cooperation,” Yu Baocai said.

Sinopec, known formally as China Petroleum and Chemical, is involved in two major projects in Russia, an oil and gas production joint venture called Taihu in the Volga-Ural petroleum basin in western Russia with state-owned peer Rosneft, and the development of the Amur gas chemical complex and processing plant with Sibur in the Russian Far East, adjoining China.

Sinopec holds a 10% stake in privately owned Sibur.

Last week, Sun Lili, Sinopec Engineering Group subsidiary chairperson said that their four engineering projects in Russia, remain “relatively stable” and that risks in the country “are, in general, controllable.”

Gennady Timchenko, another shareholder in Sibur, has been sanctioned by the EU, and the U.K. Rosneft has been penalized by the U.S. and U.K.

According to Sinopec, its capital budget this year would rise 18% to 198 billion yuan ($31 billion), with additional funding directed at exploration and chemicals.

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